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INTRODUCTION

The company was originally established in 1958 as Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners. The L.G group was a merger of two Korean companies Lucky and Goldstar. Is the second largest producer of television and third largest producer of mobile phones.

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Type of bussines

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Vision
A company providing the best communication products to enrich the human experience Proposed

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Mission
Our

mission is to be recognized as the leader in development of global communications products, and to sustain our leadership position in Koreas telecommunications market. We lead this market through innovation and outstanding passion for excellence and product performance. Proposed-

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Market segmentation

Demographic - Income -Occupation Geographic -Tier 1 cities - Tier 2 cities

Psychographic -Life style -Personality

Behavioural -Value -Benifit

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S.w.o.t. analysis
Strengths:

Market leader in home appliances. Has got manufacturing unit in tax incentive . Wide range of products to serve all categories. Widest distribution network in the industry(47 barnches,10000 trade partners). Good after sales service offered.
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Annual production GRAPH

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ANNUAL PRODUCTION GRAPH

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weaknessES.

Samsung being its competitor provides similar products.

Consumers compare L.G with Samsung its Korean rival not with other global companies.

Lack of expert operators for complex machines due to illiteracy and lack of training in India.

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oppOrtunitIES

Fast growth of the home appliances market Shifting to rural areas Thus maintaining control over the market and the highest share in home appliances market

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Threats

Close competitors like Samsung are compared to it.

Price war with Samsung.

Competition from Indian brand and other foreign brands.

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Pest analysis/ Political factor

High

import duty Export promotion sheme of indian government like EPCG Plants in Tax incentive areas like Pune and Greater Nodia

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ECONOMIC FACTOR
Growing

GDP high disposable income Increase in spending power Increase in Per Capital income

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Socio-cultural factor
They

are manufacturing Eco friendly products Increasing life style

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TECHNOLOGICAL FACTOR
Improvement

in technology made the products cheaper Quality of Product has been increased

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rEcommendations:
fast innovation fast growth suggested development strategy

Development strategies aim at gaining more customers from the 1.1 billion prospective customers of India.
o

Currently India is equipped with a production line to manufacture 6 lakh T.V sets and 1 million refriegerators per year.
o

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Recommendations:
Extensive

usage of Transvector Nozzlesat C-Block washing, Pickling ,Par t Washing and Shell Washing Machine compressed air system by Electrically Driven Blowers for homogenization Of Chemical in Degreasing of pressure boosters for
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Replace

Installation

local need.